MARK 486 Notes
Mark 486
Chapter 1:
How to really innovate
Most companies have ambitious growth goals the problem is that there are only so many sources of growth (4)
Market growth
Market share increase
New markets
Acquisitions
Growth is expensive
Market in many industrialized countries and industries are mature and increasingly commoditized; gains in market shares are expensive and acquisitions often don’t work
Even traditional product development (line extensions, improvement, and product modifications) seems depleted (useless) and only serves to maintain market share
Shareholders and executives want a steady stream of profitable and high profile new products, but management practices and the competitive and financial environments are steering companies in a different direction, initiatives that are :Towards smaller
Less risky
Less ambitious
They are preoccupied with short term profit abilities, disadvantageous:
Difficult to create highly profitable new products yet maximize short term results – the goal of “faster, better, cheaper”
Even with a longer term focus, its really difficult to create that game changing innovation these days many markets and sectors simply appear barren (unproductive)
Is True Innovation Dead
Launching a truly differentiated product is rare these days
Developing and launching truly differentiates new products is rare these days for most firms
Research show that the key to profitability stems from developing and launching a unique superior product with a great value proposition
Markets are mature and increasingly commoditized difficulty in creating a “breakthrough” product and sustaining competitive product advantage.
Ex: food industry, consumer packages goods in general, chemicals and plastics
Disruptive technologies: source of much product innovation, are scare in most industries
Even today’s high tech industries struggle: New technologies do emerge and dramatically generate new sales and profits (cell phones, digital
Chapter 1:
How to really innovate
Most companies have ambitious growth goals the problem is that there are only so many sources of growth (4)
Market growth
Market share increase
New markets
Acquisitions
Growth is expensive
Market in many industrialized countries and industries are mature and increasingly commoditized; gains in market shares are expensive and acquisitions often don’t work
Even traditional product development (line extensions, improvement, and product modifications) seems depleted (useless) and only serves to maintain market share
Shareholders and executives want a steady stream of profitable and high profile new products, but management practices and the competitive and financial environments are steering companies in a different direction, initiatives that are :Towards smaller
Less risky
Less ambitious
They are preoccupied with short term profit abilities, disadvantageous:
Difficult to create highly profitable new products yet maximize short term results – the goal of “faster, better, cheaper”
Even with a longer term focus, its really difficult to create that game changing innovation these days many markets and sectors simply appear barren (unproductive)
Is True Innovation Dead
Launching a truly differentiated product is rare these days
Developing and launching truly differentiates new products is rare these days for most firms
Research show that the key to profitability stems from developing and launching a unique superior product with a great value proposition
Markets are mature and increasingly commoditized difficulty in creating a “breakthrough” product and sustaining competitive product advantage.
Ex: food industry, consumer packages goods in general, chemicals and plastics
Disruptive technologies: source of much product innovation, are scare in most industries
Even today’s high tech industries struggle: New technologies do emerge and dramatically generate new sales and profits (cell phones, digital